Blockchain
Tokenizing Real Estate
Tokenization refers to a digital representation of an asset on a blockchain. Any asset can be tokenized, including investment tools like bonds and equities, physical assets like art and real estate properties, and intangible valuables like identity and data.
Essentially, a real estate property is tokenized by dividing it into fractions and automating the operational process using smart contracts. The first step is to divide the property's value into smaller bits, depending on the property owner's choice. Then, the property can be purchased bit by bit through these tokens, either by many different investors or by one person.
"The digitalization of real estate diminishes market barriers, augments liquidity, enhances transparency, and streamlines processes within the real estate sector. Blockchain technology offers heightened liquidity, fractional ownership, and fortified security owing to the immutable nature of blockchain.”
Advantages Of Real Estate Tokenization
One of the advantages of tokenizing real estate is that it opens up the real estate market to smaller investors, thereby increasing movement and demand for all properties. Let's say I have a property that is worth $100,000. I could create 100 tokens, each valued at $1,000. This would turn selling your property into a process similar to crowdsourcing. I wouldn't have to wait for one prominent investor to purchase my property. Instead, 100 small investors could do the trick.
This method results in increased liquidity and decreased barriers to entry to the real estate market. Because the capital threshold is lower, the property is liquidized much faster while smaller investors enter the field.
Moreover, smart contracts handle the whole process of tokenizing and selling on-chain, leading to transparency, automation, and security. The role of costly intermediaries like agents, banks, and legal representatives are handled by smart contracts. A smart contract can automatically sell a token as soon as the conditions are met, which is much faster, cheaper, and error-free than a human intermediary.
Finally, the added benefit of blockchain technology appears in real estate tokenization as well: Security and transparency. All the sale and ownership processes take place and are recorded on-chain. This data is accessible to anyone and is almost impossible to tamper with. Therefore, all transactions remain trustworthy.
Tokenization
Services
Advanced services for property tokenization via blockchain.
Blockchain
Investments
Opportunities to invest in blockchain-based ventures.
Blockchain Operations and Management
End-to-end blockchain operation and management services.
The Verde Roca white-label tokenization service enables you to digitize and automate processes related to investments, distributions, and trading. With an end-to-end solution, you can:
✓ Fractionalize your assets, companies, and funds down to $100.
✓ Allow investors to pay in fiat or stablecoin.
✓ Pay out dividends and rental income in fiat or stablecoin.
✓ Facilitate trading peer-to-peer wallet-to-wallet without counterparty risk.
✓ Manage share cap table and corporate actions to stay compliant.
✓ Onboard investors with KYC and e-signing of documents.
Through fractionalization and liquidity, you can gain a competitive edge.
Tokenize your properties, development projects, funds, companies, and assets to fund-raise, create internal liquidity among shareholders, and significantly reduce cost by automating back office functions.
management services.